CONTACT: | ||
Richard Gaetz, President/CEO Sean Washchuk, VP Finance/CFO Vitran Corporation Inc. 416/596-7664 | Robert Rinderman Karin Oloffson Jaffoni & Collins Incorporated 212/835-8500 or VTNC@jcir.com | |
VITRAN REPORTS RECORD $0.38 DILUTED EPS IN 2005 Q2
ON 12 PERCENT REVENUE RISE
- Extends Earnings Increase Streak to 15 Consecutive Quarters -
TORONTO, ONTARIO (July 21, 2005) – Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced record quarterly financial results for the 2005 second quarter ended June 30, 2005 (all figures reported in $U.S.).
Vitran achieved net income of $4.8 million, or 0.38 per diluted share, on revenue of $105.1 million in the second quarter of 2005. In the comparable 2004 quarter, Vitran recorded net income of $4.4 million, or $0.34 per diluted share, on revenue of $93.9 million.
“The second quarter was another record for Vitran, with the Company achieving diluted earnings of $0.38 per share, yet perhaps the most important development during the quarter was the closing of our Chris Truck Line (CTL) acquisition on May 31, 2005. CTL further expands our U.S. freight coverage in the Midwestern and Southwestern U.S. by four new states and an additional 19 terminals. As previously stated, we expect CTL’s contribution to be accretive to Vitran’s 2005 full-year earnings results. Subsequent to the acquisition, we continue to maintain a strong financial position, with $12.7 million in cash and $29.8 million in available credit,” stated Vitran President and Chief Executive Officer Rick Gaetz.
During the six-month period ended June 30, 2005, Vitran recorded net income of $7.6 million, or $0.59 per diluted share, on revenue of $199.0 million. In the prior year period, the Company achieved net income of $6.0 million, or $0.47 per diluted share, on revenue of $181.1 million.
Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment rose 20 percent during the 2005 second quarter to $6.6 million, highlighted by a 12 percent revenue increase at the U.S. business unit and a seven percent rise in revenue from the Canadian business unit. The LTL segment’s consolidated OR (operating ratio) improved to 92.3, versus 92.7 in the year ago quarter. The U.S. LTL unit achieved an eight percent quarter over prior year quarter improvement in revenue per hundredweight and a five percent increase in revenue per shipment. The Canadian LTL operation also recorded solid Q2 results with a 12 percent increase in revenue per shipment and revenue per hundredweight jumping 10 percent.
Vitran’s Truckload segment achieved a 47 percent income from operations increase during the quarter, and lowered its OR to 92.0. The Logistics segment achieved 41 percent higher operating income, improving its OR to 93.6.
Following the close of the quarter, in early July, Vitran Logistics commenced operations of a 125,000 square foot dedicated distribution facility in Calgary on behalf a leading Canadian retail apparel and footwear company.
Guidance Update
Following the closure of the Chris Truck Line acquisition on May 31, 2005, management raised its 2005 diluted earnings per share guidance for the year to $1.35 to $1.47.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering
less-than-truckload, logistics, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (NASDAQ:VTNC, TSX:VTN), visit the website atwww.vitran.com.
Statements in the press release regarding management’s future expectation, beliefs, goals, plans, or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements or historical fact may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words “believes”, “anticipates”, “plans” “intends”, “will”, “should”, ”expects”, “projects”, and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual result, future circumstances or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, economic factors, demand for the Company’s services, fuel price fluctuations, the availability of employee drivers and independent contractors, risks associated with geographic expansion, capital requirements, claims exposure and insurance costs, competition, government regulation changes, environmental hazards and other risks detailed from time-to-time in the Company’s public disclosure documents or other
filing with the Canadian and United States securities commissions or other securities regulatory
bodies. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables follow)
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VITRAN CORPORATION INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of United States dollars)
June 30, 2005 | Dec. 31, 2004 | |||||||
Assets | ||||||||
Current assets: | $ | 9,536 | $ | 7,375 | ||||
Marketable securities | 3,193 | 33,087 | ||||||
Accounts receivable | 46,999 | 40,124 | ||||||
Inventory, deposits and prepaid expenses | 7,888 | 5,924 | ||||||
Future income tax assets | 3,269 | 3,667 | ||||||
70,885 | 90,177 | |||||||
Capital assets | 53,500 | 37,563 | ||||||
Goodwill | 61,901 | 45,304 | ||||||
$ | 186,286 | $ | 173,044 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable & accrued liabilities | $ | 39,377 | $ | 33,377 | ||||
Income and other taxes payable | 2,315 | 2,399 | ||||||
Current portion of long-term debt | 4,531 | 3,030 | ||||||
46,223 | 38,806 | |||||||
Long-term debt | 8,866 | 11,507 | ||||||
Future income tax liabilities | 3,814 | 3,546 | ||||||
Shareholders’ equity: | ||||||||
Common shares | 63,367 | 60,798 | ||||||
Contributed surplus | 616 | 323 | ||||||
Retained earnings | 61,964 | 54,972 | ||||||
Cumulative translation adjustment | 1,436 | 3,092 | ||||||
127,383 | 119,185 | |||||||
$ | 186,286 | $ | 173,044 | |||||
(Statements of Income follows)
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VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited) (in thousands of $U.S., except share and per share amounts)
Three Months | Three Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, 2005 | June 30, 2004 | June 30, 2005 | June 30, 2004 | |||||||||||||
Revenues | $ | 105,050 | $ | 93,931 | $ | 198,991 | $ | 181,077 | ||||||||
Operating expenses | 86,742 | 78,665 | 166,886 | 154,239 | ||||||||||||
Selling, general and administrative | ||||||||||||||||
expenses | 9,795 | 8,201 | 18,612 | 16,364 | ||||||||||||
Other expense (income) | (17 | ) | (37 | ) | (27 | ) | (113 | ) | ||||||||
96,520 | 86,829 | 185,471 | 170,490 | |||||||||||||
Income from operations before | ||||||||||||||||
depreciation | 8,530 | 7,102 | 13,520 | 10,587 | ||||||||||||
Depreciation expense | 1,517 | 1,232 | 2,848 | 2,540 | ||||||||||||
Income from operations before undernoted | 7,013 | 5,870 | 10,672 | 8,047 | ||||||||||||
Interest expense, net | 86 | 37 | 38 | 80 | ||||||||||||
Income from operations before income taxes | 6,927 | 5,833 | 10,634 | 7,967 | ||||||||||||
Income taxes | 2,131 | 1,446 | 3,084 | 1,931 | ||||||||||||
Net income | $ | 4,796 | $ | 4,387 | $ | 7,550 | $ | 6,036 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.39 | $ | 0.36 | $ | 0.61 | $ | 0.50 | ||||||||
Diluted | $ | 0.38 | $ | 0.34 | $ | 0.59 | $ | 0.47 | ||||||||
Weighted average number of shares | ||||||||||||||||
Basic | 12,447,300 | 12,266,703 | 12,429,732 | 12,190,998 | ||||||||||||
Diluted | 12,778,285 | 12,771,784 | 12,767,134 | 12,716,553 | ||||||||||||
(Statement of Cash Flows follows)
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VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands of United States dollars)
Three months | Three months | Six months | Six months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Jun. 30, 2005 | Jun. 30, 2004 | Jun. 30, 2005 | Jun. 30, 2004 | |||||||||||||
Cash provided by (used in): | ||||||||||||||||
Operations: | ||||||||||||||||
Net income | $ | 4,796 | $ | 4,387 | $ | 7,550 | $ | 6,036 | ||||||||
Items not involving cash from operations | ||||||||||||||||
Depreciation expense | 1,517 | 1,232 | 2,848 | 2,540 | ||||||||||||
Future income taxes | 82 | (465 | ) | 647 | (169 | ) | ||||||||||
Stock based compensation expense | 164 | 58 | 293 | 58 | ||||||||||||
Gain on sale of capital assets | (17 | ) | (37 | ) | (27 | ) | (113 | ) | ||||||||
6,542 | 5,175 | 11,311 | 8,352 | |||||||||||||
Change in non-cash working capital components | 254 | 3,448 | (1,995 | ) | (6,741 | ) | ||||||||||
6,796 | 8,623 | 9,316 | 1,611 | |||||||||||||
Investments: | ||||||||||||||||
Purchase of capital assets | (623 | ) | (1,443 | ) | (6,845 | ) | (3,078 | ) | ||||||||
Proceeds on sale of capital assets | 24 | 79 | 38 | 214 | ||||||||||||
Acquisition of subsidiary | (26,499 | ) | — | (26,499 | ) | — | ||||||||||
Marketable securities | 27,412 | (146 | ) | 28,781 | (291 | ) | ||||||||||
314 | (1,510 | ) | (4,525 | ) | (3,155 | ) | ||||||||||
Financing: | ||||||||||||||||
Repayment of long-term debt | (570 | ) | (2,168 | ) | (1,140 | ) | (3,977 | ) | ||||||||
Issue of Common Shares upon exercise of | ||||||||||||||||
stock options | 25 | 548 | 42 | 899 | ||||||||||||
Repurchase of Common Shares | (164 | ) | — | (856 | ) | — | ||||||||||
(709 | ) | (1,620 | ) | (1,954 | ) | (3,078 | ) | |||||||||
Effect of translation adjustment on cash | (630 | ) | 108 | (676 | ) | 166 | ||||||||||
Increase (decrease) in cash position | 5,771 | 5,601 | 2,161 | (4,456 | ) | |||||||||||
Cash position, beginning of period | 3,765 | 2,360 | 7,375 | 12,417 | ||||||||||||
Cash position, end of period | 9,536 | 7,961 | 9,536 | 7,961 | ||||||||||||
Change in non-cash working capital components: | ||||||||||||||||
Accounts receivable | (386 | ) | (1,832 | ) | (3,747 | ) | (6,836 | ) | ||||||||
Inventory, deposits and prepaid expenses | (1,779 | ) | 690 | (1,455 | ) | 684 | ||||||||||
Income and other taxes recoverable/payable | 349 | 1,226 | (412 | ) | (59 | ) | ||||||||||
Accounts payable and accrued liabilities | 2,070 | 3,364 | 3,619 | (530 | ) | |||||||||||
$ | 254 | $ | 3,448 | $ | (1,995 | ) | $ | (6,741 | ) | |||||||
(additional financial information follows)
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LTL Statistical Information — U.S. and CDN Divisions
For the quarter ended June 30, 2005
U.S. LTL | Q. over Q. | CDN LTL | Q. over Q. | |||||||||||||||||
($U.S.) | Division | % Change | ($CDN) | Division | % Change | |||||||||||||||
Revenue (000’s) | $ | 50,017 | 12.3 | Revenue (000's) | $ | 45,370 | 6.5 | |||||||||||||
No. of Shipments | 420,734 | 7.0 | No. of Shipments | 222,661 | (5.0 | ) | ||||||||||||||
Weight (000’s lbs) | 579,630 | 3.6 | Weight (000's lbs) | 439,136 | (3.1 | ) | ||||||||||||||
Revenue per shipment | $ | 118.88 | 4.9 | Revenue per shipment | $ | 203.76 | 12.1 | |||||||||||||
Revenue per CWT | $ | 8.63 | 8.4 | Revenue per CWT | $ | 10.33 | 9.9 |
For six months ended June 30,2005
U.S. LTL | Yr. over Yr. | CDN LTL | Yr. over Yr. | |||||||||||||||||
($U.S.) | Division | % Change | ($CDN) | Division | % Change | |||||||||||||||
Revenue (000’s) | $ | 92,636 | 9.0 | Revenue (000's) | $ | 86,458 | 5.3 | |||||||||||||
No. of Shipments | 791,160 | 5.5 | No. of Shipments | 424,227 | (6.4 | ) | ||||||||||||||
Weight (000’s lbs) | 1,093,598 | 1.2 | Weight (000's lbs) | 826,605 | (5.8 | ) | ||||||||||||||
Revenue per shipment | $ | 117.09 | 3.3 | Revenue per shipment | $ | 203.80 | 12.6 | |||||||||||||
Revenue per CWT | $ | 8.47 | 7.8 | Revenue per CWT | $ | 10.46 | 11.9 |
Supplementary Segmented Financial Information
(000’s of $U.S.)
For the quarter | For the quarter | |||||||||||||||||||||||||||
ended June 30, 2005 | ended June 30, 2004 | |||||||||||||||||||||||||||
Revenue | Inc. from | OR% | Revenue | Inc. from | OR% | |||||||||||||||||||||||
Operations | Operations | |||||||||||||||||||||||||||
LTL | 86,429 | 6,625 | 92.3 | LTL | 75,958 | 5,533 | 92.7 | |||||||||||||||||||||
LOG | 9,615 | 615 | 93.6 | LOG | 8,768 | 436 | 95.0 | |||||||||||||||||||||
TL | 9,006 | 716 | 92.0 | TL | 9,205 | 487 | 94.7 |
For the six months ended June | For the six months | |||||||||||||||||||||||||||
30, 2005 | ended June 30, 2004 | |||||||||||||||||||||||||||
Revenue | Inc. from | OR% | Revenue | Inc. from | OR% | |||||||||||||||||||||||
Operations | Operations | |||||||||||||||||||||||||||
LTL | 162,533 | 9,887 | 93.9 | LTL | 146,217 | 7,564 | 94.8 | |||||||||||||||||||||
LOG | 18,492 | 980 | 94.7 | LOG | 16,935 | 773 | 95.4 | |||||||||||||||||||||
TL | 17,966 | 1,458 | 91.9 | TL | 17,925 | 933 | 94.8 |
# # #
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